U.S. Market Indexes Near Records on Earnings and Rising Oil

Nichole Harper
22 Apr, 2015
New York City

Stocks traded mixed on Wall Street and crude oil rebounded to a new high in the year. Existing home sales in March increased 6.3% to 5.2 million units. McDonald

[R]1:30 PM – Stocks traded mixed on Wall Street and crude oil rebounded to a new high in the year. Existing home sales in March increased 6.3% to 5.2 million units. McDonald’s and Yum Brands were the latest two fast food providers to report weak quarterly results.[/R]

Stocks were mixed on Wall Street as earnings parade picked up steam, oil stayed near the high of the year and European markets extended gains.

Market indexes are struggling in New York as valuations remain stretched and investors are focused on individual companies like Coca Cola Co, Visa Inc and Chipotle Mexican Grill Inc.

Visa soared more than 6% after Chinese officials are closer to permitting the electronic payment processor in entering the second largest economy.

On the economic front, existing home sales in March rose the highest level since September 2013 as expanding job market and affordable interest rate help uneven recovery in the housing market.

Seasonally adjusted annual rate for existing home sales in March climbed 6.3% to 5.19 million from 4.89 million in February but surged 10.4% from a year ago month, the National Association of Realtor said in a report.

On Wall Street, Tollbooth Strategy Index gained 0.5% or 54.92 to 10,696.94.

S&P 500 index rose 6.84 or 0.3% to 2,104.13 and the Nasdaq Composite Index increased 9.65 or 0.2% to 5,023.77.

Crude oil in New York fell 21 cents to $56.40 a barrel and gold tumbled $13.60 to $1,189.50 an ounce.

U.S. Movers

The Boeing Company ((BA)) dropped 1.8% or $2.69 to $150.64 after the aerospace company reported total revenues in the first-quarter ending in March jumped 8.2% to $22.15 billion from a year ago period.

Net income in the quarter climbed 38.9% to $1.34 billion or $1.87 per diluted share compared to $965 million or $1.28 from the same quarter last year.

McDonald''s Corporation ((MCD)) climbed 3.9% or $3.73 to $98.59 after the quick service restaurants operator reported revenues in the first-quarter ending in March plunged 11% to $5.96 billion from a year ago period.

Comparable store sales across all markets in the quarter dropped 2.6% and comparable sales in Europe decreased 0.6%.

Comparable store sales from Asia Pacific, Middle East and Asia declined 8.3% mainly due to broad-based consumer perception issues in Japan along with negative but improving performance in China.

Net income in the quarter tumbled 33% to $811.5 million or 84 cents per diluted share compared to $1.20 million or $1.21 from the same quarter last year.

The Coca-Cola Co ((KO)) gained 1% or 41 cents to $41.19 after the nonalcoholic beverages maker said net revenues in the first-quarter ending in March rose 1% to $10.71 billion from a year ago period.

Net income in the quarter dropped 4% to $1.56 billion or 35 cents per diluted share compared to $1.62 billion or 36 cents from the same quarter last year.

European Markets

Across the Atlantic, European Central Bank’s Governing Council lifted the Emergency Liquidity Assistance limit for banks in Greece by €1.5 billion to €75.5 billion.

OAO Gazprom, Russia-based natural gas explorer declined more than 2% after the European Union regulators said that the company is imposing unfair pricing structure by preventing or redirecting the flow of energy from certain central European countries.

In addition, lira declined 0.9% against the dollar after the central bank in Turkey left its key rate on hold and Australia dollar gained after the latest annual inflation to March dropped the most since record keeping began from the previous quarter.

In London trading, FTSE 100 index slipped 0.8% or 60.68 to 7,002.25 and in Frankfurt the DAX index dropped 0.8% or 94.09 to 11,845.49.

In Paris, CAC 40 index fell 0.1% or 5.61 to 5,187.03.

Credit Suisse Group AG slid 0.1% to 26.22 Swiss francs after the diversified financial services provider reported net revenues in the first-quarter ending in March dropped 3% to 6.65 billion francs from 6.83 billion francs in a year ago period.

Net profit in the quarter surged 23% from a year ago to 1.05 billion francs compared to 859 million francs and diluted earnings per share jumped to 0.62 francs from 0.48 francs.

Compagnie Financiere Richemont SA rose 0.2% to 83.25 Swiss francs after the Switzerland-based luxury goods retailer forecasted net profit for the year ending in March to drop 36% but sales to jump 5% compared to a year ago period.

The group results are scheduled to release on May 22.

Tesco Plc declined 4.1% to 225.18 pence after the U.K.-based food retailer reported group sales in the year ending in February dropped 2% to £62.28 billion from £63.56 billion in a year ago period.

Net in the year swung to a loss to £5.77 billion compared to profit of £970 million in a year ago period and diluted loss per share swung to 70.24 pence from diluted earnings per share of 23.72 pence.

The retailer reported pre-tax loss of £6.38 billion compared to profit of £2.26 billion a year ago period.

Tesco recorded one-time charge in the year for about £7 billion including fixed asset impairments of £4.7 billion.

Total U.K. sales for the year dropped 1.8% to £44.6 billion and a net debt of £8.5 billion and a net pension deficit of £3.9 billion.

Asian Markets

Market indexes in Tokyo advanced and the popular Nikkei average jumped above 20,000 for the first time in fifteen years. Chugai Pharmaceuticals said fiscal year sales declined 5.6%. Idemitsu Kosan estimated wider annual loss.

Market indexes in Tokyo advanced after foreign investors stepped up exposure to large-cap stocks and banking sector.

The international trade account swung to a surplus in March to 229.3 billion yen compared to a loss of 1.45 trillion yen in the same month a year ago, the Finance Ministry announced today.

The ministry said export in March climbed 8.5% to 6.93 trillion yen from 6.38 trillion yen in the month a year ago

Import in the month plunged 14.5% to 6.70 trillion yen compared to 7.83 trillion yen in the same month a year ago.

The Nikkei 225 Stock Average climbed 224.81 or 1.1% to 20,133.90 and the broader Topix index gained 12.91 to 1,621.79.

The yen closed at 119.51 against a dollar.

Market indexes in Mumbai rebounded in tentative trading as investors digested corporate earnings announcements.

Rupee weakened 3 paisa to 62.98.

The Sensex Index jumped 214.09 or 0.8% to close at 27,890.13. The CNX Nifty rose 51.95 or 0.6% to 8,429.70.

Market indexes in Mumbai rebounded and the rupee eased. Yes Bank net income in the quarter jumped 28% and Wipro net in the quarter rose 2% on 4% increase in revenues.

Wipro Limited declined 6% to ₹544 after the information services provider reported net in the fourth-quarter rose 2% to ₹2,270 crore.

Total revenues in the quarter increased 4% to ₹12,140 crore.